Digital strategy

Category

29

May

2017

29

May

2017

Russian Luxury market raised in 2016 but still lagging on ecommerce

18

Contactlab and Exane BNP Paribas continue to analyze how Fashion&Luxury brands perform online. This time we shift our focus to the Russian luxury market after having tested the market in India, South Korea and China.

Russians’ consumption of luxury has declined sharply in the past three years… Russian consumers drove much of the growth in the luxury market through the 90s and it is now accounting for more than 6% of the global luxury spend. After the economic sanctions against Russia the spending on luxury goods seemed to be worsening but the worst seems to be behind now and 2017 could see a stronger than ever comeback.

A number of indicators are bringing hope back up again: consumer confidence is up and going, unemployment is coming down; car sales are booming, residential construction growth is already in positive territory.

In terms of luxury, Russian clients are now more attracted to shopping luxury locally rather than going abroad.

As mentioned previously the Digital luxury has a long way to go in Russia. Digital performance in Russia is c.20% behind the USA in ‘strategic reach’ and c.40% in ‘digital customer experience’ when we apply our Digital Competitive Map methodology.